Whether there’s a pandemic like there is now, or there’s some other economic crisis, you may find it hard to make ends meet. You may fall behind on your payments, or you may miss them altogether. Your balances may start climbing, and you may start getting harassing phone calls from creditors.
You may start thinking about filing for bankruptcy as a way to free up the money you need and to regain control of your finances. While bankruptcy may ultimately be the right answer for you, you may also want to consider some other options before you file. A vehicle title loan could be the right option.
Here are a few ways that a vehicle title loan might help you avoid bankruptcy:
Prevent Collections or Repossession
Most people don’t just stop paying their bills because they don’t feel like paying them. They just don’t have the money. If they had the money, they would pay. If you find yourself in this position, you can get the money you need by taking out an auto title loan. You can borrow up to the value of your vehicle – so long as you own your vehicle outright and have a title in your name.
You can use the money from your title loan to pay off accounts that are about to go into collections or repossession. That will save you from more money problems that will result from the fines, interest rates, and penalties that will make your balances even larger (and harder to pay off).
Pay Down Higher Interest Items
Unfortunately, some vehicle title loans have a bad reputation for high-interest rates because there are some bad companies out there who maintain predatory terms. However, if you shop around, you can find a quality, reputable title loan company that will give you competitive terms.
With the right terms, you can use your title loan to pay off credit cards and other accounts that have a higher interest rate. You can save a little money on your monthly bills, and you can save a lot of money in the long term.
Consolidate Your Debt Payments
You may try to take out additional credit cards or other lines of credit to make ends meet when you are struggling. Eventually, you have multiple minimum monthly payments that you are making, but you aren’t putting a dent in your overall balance because you are only paying off the interest. Meanwhile, you have no money left over each month because you are putting everything into your debt payments.
By getting a title loan, you can pay off all your credit lines (depending on how much value there is in your vehicle), and you can have one monthly payment to make. That can bring down your overall monthly payment, helping to gain greater control over your monthly budget. You can free up money so that you don’t have to turn to take out more lines of credit when expenses arise, or you can put that additional money into savings for a rainy day.
If used wisely, an auto title loan can help you gain greater control of your finances so that your debts don’t spiral out of control and you don’t need to file for bankruptcy. What’s possible depends entirely on the value of your vehicle, the terms you get for your title loan, and your other financial circumstances. Shop around to find the best title loan company and the best terms. The better your interest rates and other terms, the more advantageous the loan will be and the sooner you will be able to get your finances under control. If your debt problem is advanced, talk to a bankruptcy attorney about how filing for bankruptcy may be the better choice.
If you are interested in a title loan, call USA Money Today to get a quote with competitive rates. We offer the best title loans in Las Vegas and the surrounding area. We offer quick approval so that you can get the cash you need today. We offer low rates, and we don’t charge any penalties for pre-payment of your loan. Contact us in Las Vegas today to learn about our title loans and find out why we have more than 600 five-star reviews!
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